Province, feds help Algoma survive tariffs

Queen’s Park is lending Algoma Steel $60 million to help the company remain competitive in the face of U.S. tariffs on steel and aluminum.

That’s on top of $90 million in federal money for the Sault Ste. Marie firm.

“The investment announced today secures thousands of jobs and pensions and signals northern Ontario is open for business,” provincial Minister of Energy, Northern Development and Mines Greg Rickford said Thursday. “Our government is committed to ensuring Algoma Steel remains competitive and sustainable in a tough market.”

Kalyan Ghosh, Algoma’s chief executive officer, said the loans are part of the purchase and restructuring of the company, which is investing $600 million in the steelmaking facility.

“This support will enable us to make important investments in new technology that will enhance our reliability, extend asset life and reduce our environmental footprint,” Ghosh said.

“We greatly appreciate the province’s investment in Algoma Steel’s long-term sustainability,” he said, noting the company has committed to protect jobs and fund its three defined benefit pension plans, which benefit about 2,100 current and 6,300 past employees or retirees.

Rickford said as part of the agreement, the company’s new owners will be tackling past environmental contamination at the Sault Ste. Marie mill. Algoma has committed to spend $3.8 million annually over 21 years on cleaning up the site.

Federal Economic Development Minister Navdeep Bains is helping the firm with a $90 million infusion to help cope with the tariffs slapped on Canadian steel and aluminum producers last June by U.S. President Donald Trump.

Ottawa has rejected the premise of the American duties — that its metals exports pose a national-security threat to the U.S. — and has been fighting for the removal of the tariffs.